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Richa Mishra

THE power of the consumer is waxing eloquent. Over the last decade there has been a gradual increase in his affluence and spending power. This has brought about an increased `comfort led' mindset with a heightened dependence on home appliances and gadgets. No longer are the appliances a luxury but a `necessity'.

With less guilt associated with consumption and no stigma attached to `debt,' there has been an explosion in financed purchases. "A lot of buying is being done by young couples with double income. Today, everything that was aspirational yesterday has become functional and within reach," says Ms Vatsala Misra, Consultant KSA Technopak.

One reason for the change in the consumer profile is that the white goods sector has turned into a buyers' paradise as against sellers' market ten years ago. Says a Consumer Electronics and TV Manufacturers Association (CETMA) official, "Now the consumer is more aware of the features and the technology of the product and is willing to pay an extra amount to get the `state-of-art' product."

Since the opening up in 1992, the consumer has been literally spoilt for choices with MNCs and domestic players all pampering him with choice.

"With so many choices at hand, the consumer is no longer willing to pay a premium for a brand name alone and wants value for his money," says Mr Kishan Kalani, COO, Kevin Infotech Pvt Ltd, the manufacturing outfit of Oscar.

Concurring with these views, Mr R. Zutshi, Director-Sales, Samsung India Electronics Ltd, says that "in the past 10 years, the Indian consumer has been exposed to latest, contemporary technology products and this has had tremendous impact on his /her buying pattern. The advent of new technology and the added functionality in the products has encouraged consumers to upgrade. Thus, the product lifecycles have dropped from an average 10-12 years to 6-8 years."

Second, price is no longer the main consideration for buying a product, Mr Zutshi said adding, technology or features too influence the purchase intention of the customer, especially in the metros and larger cities. Also with the satellite television explosion, the consumer's awareness level on products and brands has gone up, not only in the larger markets but in the semi-urban markets as well. Besides, the entry of multinationals in the Indian market brought to the consumer the latest, contemporary technology product, right at their doorstep, points out Mr Zutshi. However, according to Ms Radheeka Roy, National Head, Qualitative - R&D and Best Practices, TNS India, "(There is) Not much differentiation in terms of technology, at least in the low-end segment. But definitely a consumer today has more number of brands to choose from at different price-points. Most of the technology innovation is at the high-end models."

On whether the marketers have changed their strategies to woo the consumers, Ms Roy says, "Attractive exchange offers, zero per cent interest schemes, freebies, festival-led promotions, event-led promotion — a lot of big-bang activity seems to be keeping the interest of the consumer alive, in today's times."

To provide better value proposition, marketers are now wooing consumers very aggressively, says the CETMA official. Agreeing that there has been a change in strategy, Mr Rajeev Karwal, Managing Director, Electrolux Kelvinator Ltd, says: "Today due to extreme competition there is no time with the companies to follow the `classical marketing strategy' of brand building. The companies presently opt for perpetual promotion, discounts and other gimmicks."

The market place is itself acting as a catalyst for heightening consumer awareness by offering products with more and more value additions. Agreeing with this view, Mr Zutshi said: "The market has moved from a seller's market to a buyer's market. And therefore the paradigm `The customer comes first' holds true. This holds true for the Global market as well as for India." Summing up the future prospects for the industry, Mr Arvind Mediratta, Vice-President Marketing, Whirlpool of India Ltd, stated: "Agreed that the sluggish economy and poor monsoon for the past couple of years has led to an overall decrease in spending in almost all sectors. Both first time intenders as well as replacement consumers were postponing durable purchases. However, the tide has begun to change in the past six months and with the current feel good feature in the economy the industry should return to good growth trends in the near future."

However, there is a great potential for the industry, as the penetration level is low.

With GDP growth of 6-7 per cent per annum for next five years, the industry expects this sector to register a growth of 15-20 per cent per annum.

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